I make and sell handbags and clutches with a quilted bargello fabric outside and I don't charge less than 50 dollars for the smallest one. The last messenger bag I made, I sold for 275, but that included leather straps and bottom. My buyers don't bat an eye about the price.
I spent 250 on a mass-produced leather Coach bag.
I don't do these a lot, and I haven't sold enough to make a going concern out of it, but I also don't feel ripped off or like I'm getting 2.60/hour for my labor, either.
I also design the bags myself, if that makes any difference.